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Chinese Sources Pitch Media On 2 Trillion-Yuan Stock Rescue
"There's an old saying in Tennessee -- I know it's in Texas, probably in Tennessee -- that says, 'Fool me once, shame on... shame on you. Fool me...' You can't get fooled again!" -- George W. Bush
On Tuesday, one mainstream financial media outlet cited the ubiquitous people familiar with the matter in reporting that -- and stop me if you've heard this before -- China's preparing a raft of "measures" aimed at bolstering the country's perpetually beleaguered equity market.
The media outlet was B
How thoughtful of Xi to establish a government fund with which to purchase shares from people who (desperately) want to exit the Chinese stock market! 🙂
Quite possibly my favorite quote ever! lol
China’s markets’ total capitalization is about USD 11TR. CNY 2TR is about USD 280BN or 2.5% of total market cap. I’m not sure how many days’ trading volume it represents. If deployed in “shock and awe” fashion, it could certainly put a short-term bottom into the market, but to what lasting effect? I think SOEs represent at least half of total Chinese market cap. So this would be in part a share buyback by SOEs, and in part the state via SOEs taking small ownership stakes in non-SOEs.